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The Honolulu Advertiser
Posted on: Monday, March 14, 2005

EDITORIAL
Businessman's recycle enterprise is laudatory

If only other Hawai'i retailers would follow in the recycling footsteps of Maui businessman Paul Hanada.

Hanada, who operates Aloha Shell Service and Ilima Shell in Kahului, has installed reverse vending machines that accept empty beverage containers in exchange for bottle deposit receipts that are redeemable at his service stations.

Unlike those certified redemption centers that offer long lines and short hours, Hanada's operation is round-the-clock. Plus, his "combo machines" accept plastic, glass and aluminum containers.

Hanada opted to buy the pair of machines for $25,000, rather than leasing them, which he says would have been more expensive.

Here's how his investment should pay off: Hanada calculates that he'll probably break even on what he takes to the recycler, and make profits on what he collects in handling fees from the state, as well as the extra gas and minimart business he'll get from customers who use his redemption services. And, of course, there's the goodwill generated by his decision to make recycling more convenient for residents.

Hanada's incentive provides a creative way for consumers to offset the price of gas, while keeping those recyclables from littering our landscape. For each container his customers redeem, Hanada notes, they'll save a nickel on a gallon of gas.

Of course, the operation is not without hassles. There's government paperwork to fill out, the machines will need servicing and UPC bar codes need to be manually entered into the vending machines so that redeemable containers are not rejected.

It would certainly make life easier for retailers who install reverse vending machines to have easier access to all relevant UPC codes. The beverage industry could help make that happen.

Clearly Hanada sees that the benefits here outweigh the difficulties. And he should be commended for his hard work and enterprising, community-oriented spirit. We hope his bold move will pay off with increased traffic at his service stations, and give other retailers the incentive and courage to follow suit.